On this 31st raise a toast to Bordeaux Wine in digital space by flashing a token. Thanks to PhillipCapital, the Singapore-based stockbroker, for issuing a digital token that allows accredited investors to own prime Bordeaux wines such as Lafite Rothschild, Haut Brion, and Mouton Rothschild.
According to Mr Seh Huan Kiat, fintech director at PhillipCapital, the move allows investors to invest in rare wines without having to negotiate with buyers and sellers, as well as avoid the onerous tasks of storage and documentation.
Each token will represent an asset-backed security that grants holders ownership of 36 bottles of 16 different wine labels.
Interestingly, each token will be backed by one bottle of wine and valued at a discount based on prevailing market prices for similar wines.
The wines will be bottled and sold in 2023, when holders can opt to redeem their security tokens for cash when the wine is sold, or take possession of the physical bottles.
They can also redeem the tokens for cash upon a sale or collect the bottles in 2026, when the security tokens mature.
(Reporting by Shikha Singh; Editing by Laxmikant Khanvilkar)
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